The labor strikes in Hollywood are putting the coveted health insurance of A-list celebrities at risk.

While the primary concerns of these strikes revolve around topics like artificial intelligence, residual payments, and job protections, health insurance, a contentious issue in labor negotiations, has quietly taken center stage.

While the A-list stars make headlines by participating in picket lines under the California sun, it’s the individuals who have not basked in the limelight, potentially losing both their income and health insurance, that face the greatest challenges as negotiations drag on and job opportunities dwindle.

The health insurance provided by both unions hinges on the idea that it is designed for members who consistently earn a substantial income. This criteria makes it challenging to acquire and maintain this health insurance, although it is of exceptionally high quality and often referred to reverently as the “Cadillac of health insurance” by those who possess it. It boasts zero monthly premiums, costs a mere $600 annually to cover immediate family members, and features deductibles in the hundreds of dollars rather than thousands.

However, the most significant strike in Hollywood in over six decades threatens the stability of this insurance. The Writers Guild of America (WGA) has been on strike since May 2, and the actors’ union, SAG-AFTRA, since mid-July, representing over 170,000 workers who have refused to perform any part of their jobs during the stalled negotiations. Writers and actors may lose their eligibility for insurance simply because they aren’t working due to the strike.

Filmmaker and Writers Guild member Susanna Fogel pointed out that even with their excellent union health insurance, members are always at risk of losing it. She remarked, “If we’re this close to not having it, then we’re already on a razor’s edge,” highlighting one of the reasons for the strike – to draw attention to this problem in the short term.

For writers to qualify for health insurance, they must earn a little over $41,700 in covered union work within a year, excluding residuals. This income requirement keeps increasing, making it challenging for even experienced writers to meet it, given the uncertainty of employment in the industry.

Actors, on the other hand, must earn $26,000 annually to qualify for health insurance from SAG-AFTRA. Residual payments count towards this requirement, making it a top priority for members, especially from streamers like Netflix, who may pay minimal residuals.

A potential solution to this problem is to lower the income requirement, allowing more members to qualify. However, some, like Alex Winter, a longtime member of three industry unions, believe this approach is not the answer. Instead, they advocate for fighting for equitable pay, addressing the core issue rather than redistributing limited resources.

A new California law that came into effect on July 1 may help striking workers who lose their health insurance. AB 2530 provides funding to cover premiums for eligible union workers who lose coverage due to strikes. Covered California will treat their incomes as just above the Medicaid eligibility level. Additionally, starting on January 1, another law will eliminate deductibles on middle-tier benchmark plans, further assisting striking workers if the labor dispute continues.

However, these new rules do not apply to crew members who are not part of the striking unions but have lost their health insurance due to the work stoppage. To address this gap, the Union Solidarity Coalition (TUSC) was established, raising funds to provide assistance to crew members in need.

While it is technically possible for studios and streamers to continue providing health insurance coverage to industry members, this outcome is unlikely given that decision-makers are on the opposite side of the bargaining table. Half of the trustees of the Motion Picture Industry Pension & Health Plans represent companies involved in the strike, making it a complex issue to resolve.

In summary, the Hollywood labor strikes are not only about job protection and pay but also about the potentially precarious health insurance of industry professionals, shedding light on the challenges faced by both writers and actors in maintaining their coverage during these turbulent times.